Intercell-Novartis alliance - next EUR 80 million payment received

» EUR 80 m upfront license and opt-in fee paid by Novartis »
Development of key products within the Novartis alliance well on
track » Actual cash position more than EUR 290 m

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finances

Wien (euro adhoc) - Vienna (Austria), November 23, 2007 - Intercell
AG announced the completion of the next step in implementing the
strategic alliance entered into with Novartis in July 2007. EUR 80 m
of the upfront license and option fee agreed with Novartis was
received by Intercell today. Together with the EUR 150 m equity
investment made in September 2007, this payment brings the cash
received to date by Intercell under this strategic alliance with
Novartis to EUR 230 m. Another unconditional and committed payment
out of this alliance of EUR 40 m is due in 2008.

"Only about half of this fee received from Novartis will be booked as
revenue in 2007, nevertheless we expect this year to become the first
profitable full year of Intercell," commented Werner Lanthaler, Chief
Financial Officer of Intercell, and he added: "Our research and
development teams have completed the kick-off for the first key
products within this alliance, including a novel Influenza vaccine
adjuvanted with IC31® and the co-development for a therapeutic
Hepatitis C Virus vaccine."

Intercell´s cash position is now more than EUR 290 m, which secures
the optimal speed of development programs and the strategic growth of
the company.

About the Intercell-Novartis cooperation:

In July 2007 Intercell and Novartis signed a major strategic
partnership to accelerate innovation in vaccines development in
infectious diseases. The partnership includes a co-development and
profit-sharing arrangement to bring together both companies´ programs
in the field of therapeutic Hepatitis C Virus vaccines with the aim
of expanding their combined leadership in this field. Intercell´s
adjuvant IC31® will be exclusively licensed to Novartis for the
development of improved Influenza vaccines. IC31® will also be
non-exclusively licensed to Novartis in other areas. Intercell
retains the right to continue to enter into partnerships for IC31®
with third parties in infectious diseases, cancer, allergies, and
other indications.

About Intercell AG:

Intercell AG is a growing biotechnology company which focuses on the
design and development of novel vaccines for the prevention and
treatment of infectious diseases with substantial unmet medical need.
The Company develops antigens and adjuvants which are derived from
its proprietary technology platforms, and has in-house GMP
manufacturing capability. Based on these technologies, Intercell has
strategic partnerships with a number of global pharmaceutical
companies, including Novartis, Merck & Co., Inc., Wyeth, sanofi
pasteur, Kirin and the Statens Serum Institut. The Company´s leading
product, a prophylactic vaccine against Japanese Encephalitis,
successfully concluded pivotal Phase III clinical trials in 2006. The
regulatory process toward a Biologics License Application (BLA) to
the U.S. Food and Drug Administration (FDA) has been initiated. The
broad development pipeline includes a Pseudomonas vaccine in Phase
II, a therapeutic vaccine for Hepatitis C in Phase II, partnered
vaccines for Tuberculosis and Staphylococcus aureus which are in
Phase I, and five products focused on infectious diseases in
preclinical development. Intercell is listed on the Vienna stock
exchange under the symbol "ICLL". For more information please visit:
www.intercell.com

end of announcement euro adhoc 23.11.2007 08:56:47
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ots Originaltext: Intercell AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Intercell AG
Lucia Malfent
Head of Communications
Tel. +43 1 20620-303
lmalfent@intercell.com

Branche: Biotechnology
ISIN: AT0000612601
WKN: A0D8HW
Börsen: Wiener Börse AG / official market